How did NVEC's revenue and expenses shift in Q3 2025 compared to previous quarters?

NVE Corporation (NVEC) experienced a significant decline in revenue and an increase in expenses in Q3 2025 compared to the previous quarter and the same quarter in the prior year.

1. Revenue Shift:
   • In Q3 2025, NVEC's total revenue decreased by 25% to $5.06 million compared to the same quarter in the previous year ($6.76 million).
   • This decline was primarily due to a 22% decrease in product sales and a 74% decrease in contract R&D revenue.
   • The company's revenue also decreased by 9% in Q3 2024 compared to the previous year.
2. Expense Shift:
   • Despite the revenue decline, NVEC's total expenses increased by 40% in Q3 2025.
   • The company's R&D expenses rose by 61%, driven by heightened investments in new technologies.
   • Selling, general, and administrative (SG&A) expenses increased by 11.7% due to increased sales staff and marketing activities.
   • Interest income decreased by 4% due to a decrease in marketable securities and lower yields on recently purchased securities.

The net income for Q3 2025 decreased by 27% to $3.05 million, or $0.63 per diluted share, compared to the same quarter in the previous year. This decline in revenue and increase in expenses reflect the challenges faced by NVEC in maintaining profitability amidst a downturn in the semiconductor industry.